Just a friendly reminder that Ukraine-Russia-Belarus make up the majority of wheat and potash exports into Europe. Also, let’s not forget the Zebra.
Hopefully the freedom loving people from Africa will join the boycotting of Russian exports and stand up to tyranny pic.twitter.com/Z5z0zITYAa
— The_Real_Fly (@The_Real_Fly) March 20, 2022
Wheat is higher by 5% today and potash prices continue to climb, effectively placing the nuts of farmers in a vice.
Spot Urea
“Russia is a major, major exporter across all of the major fertilizers,” says Linville. “Urea, they account for 14% of the global export total. UAN has been anywhere from 25% to 31% the last couple of years. Phosphate 10%. They are almost 20% of the global operating potash capacity of the entire world. They’re a big deal. Losing Russian exports is a very big deal. I don’t care where you are in the earth, it matters to you.”
On top of that, China represents about 30% of the world’s phosphate market, which is currently halted for export. Should things worsen with China, prices will continue to skyrocket in the ag space.
I’m keeping it simple in my trades. Due to this supply disruption prices have soared but with it production. All of the major fertilizer producers are ramping up production, which at some point might lead to a glut, but not yet.
I like MOS, ICL and ancillary ag science plays RKDA, YTEN and SEED. There are quite a few of them to choose from and I might move into others before the close.
Last month’s news, but good effort